The 27-year-old is set to leave Amakhosi as a free agent having failed to extend his current contract with with the Naturena-based outfit.
Khuzwayo is said to have asked Chiefs to guarantee him game time, before he signs a new deal with the Soweto giants, but the club could not offer such a guarantee.
The talented shot-stopper was previously linked with several clubs including Cape Town City and Pirates during the January transfer window.
However, Khuzwayo remained at Chiefs after failing to agree personal terms with City, who were hoping to sign him on a pre-contract.
The latest reports have indicated that Pirates are preparing for a move for Khuzwayo this winter during the July-August transfer window.
The Lions of the North secured promotion back to the Premier Soccer League (PSL) after winning this season's National First Division (NFD) title on Saturday afternoon.
Highlands thumped University of Pretoria 5-1 in an NFD match which was played at the Makhulong Stadium in Tembisa, Gauteng.
Sandilands, who has fallen out of favour at Bucs, is said to be on the Highlands shopping list as the club prepares for life in the top flight league.
The 34-year-old began the season as the Pirates' first-choice keeper, but he was dropped after committing errors.
Having made only 10 appearances in the league, Sandilands has fallen down the pecking order behind Siyabonga Mpontshane and Jackson Mabokgwane.
Pirates are reportedly ready to offload the ageing keeper at the end of the season despite having signed a long-term deal with the club only nine months ago.
It remains to be seen whether Pirates will sell Sandilands and replace him with Khuzwayo.